The use of reversing entries will change the amounts reported in the statement of financial position.

Name: The use of reversing entries will change the amounts reported in the statement of financial position.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Reversing entries are made at the beginning of a new accounting period to reverse certain adjusting entries made in the previous period. They do not change the amounts reported in the statement of financial position; they simply simplify the recording of transactions in the new period.

The Use of Reversing Entries Will Change the Amounts Reported